BASF and Yara to Explore Feasibility of Low-Carbon Ammonia Plant with Carbon Capture

BASF and Yara to Explore Feasibility of Low-Carbon Ammonia Plant with Carbon Capture

(IN BRIEF) BASF and Yara Clean Ammonia have partnered to conduct a joint study for the development of a large-scale low-carbon blue ammonia production facility with carbon capture in the U.S. Gulf Coast region. The aim is to construct a plant with a capacity of 1.2 to 1.4 million tons per year to meet the growing global demand for low-carbon ammonia. The study focuses on capturing approximately 95 percent of the carbon dioxide emissions from the production process and storing it underground. This collaboration will enable Yara to provide customers with clean ammonia, significantly reducing the product’s carbon footprint. For BASF, the plant will serve as backward integration, reducing the carbon footprint of its ammonia-based products. BASF and Yara plan to complete the feasibility study by the end of 2023. The production of blue ammonia will have similar characteristics to conventionally produced ammonia, but with the added benefit of carbon capture, contributing to the transition to less carbon-intensive alternatives. BASF has committed to reducing its CO2 emissions by 25 percent by 2030 and achieving net-zero emissions by 2050. Yara has a strong track record in greenhouse gas abatement and aims to become climate-neutral while fostering a nature-positive food future. This collaboration represents a significant step towards developing a sustainable and environmentally friendly ammonia production facility to meet the global demand.

(PRESS RELEASE) OSLO/ WATERLOO, 30-Jun-2023 — /EuropaWire/ — BASF (ETR: BAS), the world’s largest chemical producer, and Yara Clean Ammonia have joined forces for a collaborative study to develop a world-scale low-carbon blue ammonia production facility in the U.S. Gulf Coast region. The aim is to construct a plant with a total capacity of 1.2 to 1.4 million tons per annum to meet the increasing global demand for low-carbon ammonia.

“Yara and BASF have successfully collaborated in the past and we are pleased to explore a new clean ammonia project together. In line with Yara Clean Ammonia’s strategy, we are working systematically to develop asset-backed supply to decarbonize agriculture as well as serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier,” said Magnus Krogh Ankarstrand, President of Yara Clean Ammonia.

The study focuses on capturing approximately 95 percent of the carbon dioxide (CO2) emitted during the production process and permanently storing it underground. This innovative approach would enable Yara to supply its customers with clean ammonia, significantly reducing the product’s carbon footprint. For BASF, the plant would serve as backward integration, fulfilling the company’s demand for low-carbon ammonia and reducing the carbon footprint of its ammonia-based products.

“This project underlines BASF’s commitment to drive the sustainable transformation of the chemical industry. Our existing Verbund sites in the region with integrated material flows and advanced infrastructure would be ideally suited for the integration of a new world-scale ammonia facility that has the potential to significantly improve the carbon footprint of both our own operations and the various industries we serve,” said Dr. Ramkumar Dhruva, President Monomers Division, BASF.

BASF and Yara have a long-standing collaboration and currently operate a joint world-scale ammonia plant in Freeport, Texas. The feasibility study for the low-carbon blue ammonia production facility is expected to be completed by the end of 2023.

Blue ammonia shares the same characteristics as conventionally produced ammonia. However, by capturing and storing the CO2 emissions from the production process, blue ammonia plays a vital role in transitioning towards less carbon-intensive alternatives. BASF has committed to reducing its absolute CO2 emissions by 25 percent by 2030 compared to 2018 levels and achieving net zero CO2 emissions by 2050. Yara has a strong track record in greenhouse gas abatement, having reduced emissions by nearly half since becoming a listed company in 2004, with an additional 30 percent reduction targeted by 2030. Yara aims to become climate-neutral while fostering a nature-positive food future.

The collaboration between BASF and Yara represents a significant step towards developing a sustainable and low-carbon ammonia production facility with carbon capture, addressing the global demand for environmentally friendly ammonia products.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 111,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €87.3 billion in 2022. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

About Yara Clean Ammonia

Yara grows knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. We aim at significantly strengthening our leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains, and driving the development of clean ammonia globally.

Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production and ammonia for industrial applications.

Yara Clean Ammonia operates the largest global ammonia network with 15 ships and access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara. Revenues and EBITDA for the full year 2022 were USD 4,422 million and USD 249 million respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.

www.yaracleanammonia.com

Media Relations:

BASF
Katharina Meischen
Communications Monomers Division
Mobile: +32 478-90-6259
Email: katharina.meischen@basf.com

Yara Clean Ammonia
Hilde Steinfeld
Communications Director
Mobile: +47 99 35 30 30
E-mail: hilde.steinfeld@yara.com

SOURCE: BASF SE